Summary
AT&T Inc. (T) filed an 8-K on October 4, 2017, detailing amendments to its 2005 Supplemental Employee Retirement Plan (SERP) affecting key executives, including John Donovan (CEO of AT&T Communications, LLC), John J. Stephens (CFO), and John T. Stankey (Senior Executive Vice President – AT&T/Time Warner Merger Integration Planning). These amendments, effective September 28, 2017, will cap the compensation used for calculating their SERP benefits at $3,000,000, regardless of their actual compensation. This change is effective immediately for Mr. Donovan and is contingent upon the successful closing of the proposed merger with Time Warner for Messrs. Stephens and Stankey.
Key Highlights
- 1Amendment to the 2005 Supplemental Employee Retirement Plan (SERP) for key executives.
- 2Specific executives impacted include John Donovan, John J. Stephens, and John T. Stankey.
- 3SERP benefit calculation will be capped at $3,000,000 for these executives.
- 4Modification effective September 1, 2017, for John Donovan.
- 5Modification for John Stephens and John T. Stankey is conditional on the Time Warner merger closing.
- 6The Time Warner merger is currently under review by the U.S. Department of Justice.
Frequently Asked Questions
The main purpose of this filing is to inform investors about the amendment to AT&T's Supplemental Employee Retirement Plan (SERP) for specific senior executives, changing how their retirement benefits are calculated.
The amendment caps the compensation used to calculate the SERP benefit at $3,000,000 for John Donovan, John J. Stephens, and John T. Stankey, regardless of their actual earned compensation.
The change is effective September 1, 2017, for John Donovan. For John Stephens and John T. Stankey, the change is contingent on the completion of AT&T's proposed merger with Time Warner.
No, the filing states that the Time Warner merger is still under review by the U.S. Department of Justice, implying that its closure is not guaranteed and is subject to regulatory approval.